Problem: The complex number $z$ traces a circle centered at the origin with radius 2.  Then $z + \frac{1}{z}$ traces a:
(A) circle
(B) parabola
(C) ellipse
(D) hyperbola

Enter the letter of the correct option.
Explanation: Let $z = a + bi,$ where $a$ and $b$ are real numbers.  Since $|z| = 2,$ $a^2 + b^2 = 4.$  Then
\begin{align*}
z + \frac{1}{z} &= a + bi + \frac{1}{a + bi} \\
&= a + bi + \frac{1}{a + bi} \\
&= a + bi + \frac{a - bi}{a^2 + b^2} \\
&= a + bi + \frac{a - bi}{4} \\
&= \frac{5}{4} a + \frac{3}{4} bi.
\end{align*}Let $x + yi = z + \frac{1}{z},$ so $x = \frac{5}{4} a$ and $y = \frac{3}{4} b.$  Then
\[\frac{x^2}{(5/4)^2} + \frac{y^2}{(3/4)^2} = a^2 + b^2 = 4,\]so
\[\frac{x^2}{(5/2)^2} + \frac{y^2}{(3/2)^2} = 1.\]Thus, $z + \frac{1}{z}$ traces an ellipse.  The answer is $\boxed{\text{(C)}}.$